Guide to the Australian Dollar (AUD): Travel, Transfers & FX Tips
The Australian dollar (AUD) is a major global currency closely linked to commodities and China-led trade. This guide explains how it works and how to manage AUD FX costs.
The Australian dollar (AUD) — often referred to simply as the “Aussie dollar” — is one of the world’s most traded currencies. Used across Australia and widely traded by global investors, AUD plays an important role in trade, travel, and international money transfers, particularly across Asia-Pacific markets.
Whether you’re travelling to Australia, sending money to or from Australia, or running a business with AUD exposure, understanding how the currency works can help you make smarter FX decisions and reduce unnecessary costs.
Australian Dollar Performance vs Major Currencies (Last 12 Months)
The Australian dollar (AUD) has seen varied movements against major global currencies over the past year, shaped by commodity prices, interest rate expectations, and global growth trends. As a growth-sensitive currency, AUD often reacts strongly to changes in investor sentiment and regional economic conditions.
The live comparison below shows how the Australian dollar has performed relative to key trading and travel currencies over the past 12 months.
While AUD has strengthened against some currencies and weakened against others, these shifts highlight how exchange rates can move in different directions at the same time depending on global demand, capital flows, and risk appetite.
Why the Australian Dollar Matters Globally
The Australian dollar is typically ranked among the top 5–10 most traded currencies worldwide. Its importance comes from:
- Australia’s role as a major exporter of iron ore, coal, LNG, and agricultural products
- Strong trade links with China and the broader Asia-Pacific region
- A fully floating currency with deep liquidity
- A stable political system and well-regulated financial sector
Because of this, AUD is widely used in international trade contracts, FX hedging strategies, and global investment portfolios.
How to Save on AUD Exchange Rates
Exchange rates can vary significantly between banks and specialist FX providers, so it’s important to compare Australian dollar (AUD) exchange rates before making an international transfer or currency exchange.
The Exchange Rate Calculator and Comparison Table below makes it easy to compare the total cost of exchanging AUD and the potential savings available with different providers.
Australian Dollar Exchange Rate Pairs to Watch
Some of the most closely followed AUD currency pairs include:
- AUD/USD – global risk sentiment and US interest rates
- AUD/EUR – global growth and central bank divergence
- AUD/GBP – commodity cycles vs UK economic trends
- AUD/JPY – classic “risk-on vs safe-haven” pair
You can track live movements and compare providers on BER’s AUD rate pages.
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Key Factors That Influence the Australian Dollar
1. Commodity Prices
Australia is one of the world’s largest commodity exporters. When prices for iron ore, coal, and LNG rise, AUD often strengthens; when they fall, AUD can weaken.
2. China and Asia-Pacific Growth
China is Australia’s largest trading partner, making AUD sensitive to:
- Chinese economic data
- Infrastructure and construction demand
- Regional growth expectations
3. Reserve Bank of Australia (RBA) Policy
Interest rate decisions by the Reserve Bank of Australia (RBA) directly influence:
- Capital flows
- Borrowing costs
- AUD demand relative to other major currencies
4. Global Risk Sentiment
AUD tends to perform better during periods of global optimism and underperform when markets turn defensive and investors seek safe-haven currencies.
Sending Money To or From Australia
International transfers involving AUD can vary widely in cost depending on the provider.
Common use cases include:
- Migrants sending money overseas
- Businesses paying international suppliers
- Property purchases and investments
- Freelancers and remote workers paid in AUD
Banks often advertise “no fees” but apply wide FX margins, while specialist providers usually offer:
- Tighter spreads closer to mid-market rates
- Transparent pricing
- Faster settlement times
Tip: Always compare the exchange rate margin, not just the transfer fee.
Compare options in our How to Send Money to Australia Guide.
Final Thoughts: Is the Australian Dollar Stable?
The Australian dollar is generally considered a stable but cyclical currency. It tends to perform well during periods of strong global growth and commodity demand, but can weaken during economic slowdowns or sharp declines in commodity prices.
For travellers, expats, and businesses, the key takeaway is simple: small FX margins add up quickly, so comparing providers and timing transfers carefully can make a meaningful difference.
Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.
